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00:00:01
>> It's a problem Walmart just can't seem to crack, bringing down the cost of the so-called Last Mile delivery. It's tried partnering with Uber and Lyft to have their drivers drop off packages, and that didn't work. Last year, with much fanfare, it launched a program called Associate Delivery, touting it as a perfect solution, since it would use its vast number of employees to deliver packages.
00:00:24
After their normal work hours but Reuters correspondent
INAUDIBL
] says this program is struggling as well.>> We have details from one of the locations where it was being tested East Brunswick New Jersey you know they started giving away televisions and iPads to get this program off the ground.
00:00:41
Employees were still very skeptical they were only making $2 per package. They also had other issues in terms of risk and liability because Walmart was not offering insurance so they were making commercial deliveries on personal insurance. And nobody understood what would happen if there was an accident. Or if packages were lost.
00:01:01
>> Yet Walmart, isn't giving up. It's now testing a model in one store in Woodstock Georgia where four delivery drivers were hired. It also scaled back what it delivers focusing on food and groceries and eliminating merchandise such as pillows and lamps.>> So now these four have been hired specifically as delivery drivers.
00:01:20
They also double up as store employees when they're not delivering packages. One of the drives who didn't want to go on the record said that he was unloading trucks before he took up this job. And so this is a much better job for him.>> But the pay doesn't seem great.
00:01:37
A Reuters calculation shows it's on the lower range of what independent drivers can make working for Amazon's flex program. It's unclear how Walmart's latest test run will work out. But with 4,700 stores within 10 miles of 90% of the US population. Walmart knows it needs to figure out how to efficiently deliver to people's homes.